Markets overwhelmingly expect the Bank of Japan to raise rates by 25bps this week; that would be the quickest increase in the current tightening cycle and is largely priced in. Markets had already factored in a Fed decision that could mark the first policy tightening in more than three years. A surge in energy prices, yen volatility, rising bond yields and implicit US policy pressure have traders scrutinizing BoJ tone and guidance for signs of accelerated tightening versus a gradual approach. Tr

US Treasury yields rose sharply as higher oil prices rekindled inflation concerns amid strong US growth, heavy debt issuance and widening fiscal strain. Citigroup says 20-year Treasuries offer an attractive risk-reward for investors able to tolerate further volatility. Citigroup rates strategist Jason Williams says a Treasury put would strengthen if yields breach 5.3%, reflecting market expectations policymakers would act to curb a rapid rise; he adds that, unless KEVIN WARSH muddles messaging at this week’s press conference, shorts are unlikely to drive yields above that level. Markets price a Fed rate hike this week; Citigroup says the Fed chair need not adopt an overtly hawkish tone. Williams also notes corporate pension and fixed-income rebalancing demand would provide an additional layer of support once yields exceed 5.3% by allowing plans to lock higher returns against liabilities.

A top executive at Nigeria National Petroleum Company (NNPC) said the company's floating LNG project is expected to produce a cumulative 4 mln tonnes of liquefied natural gas by 2029.